Sutlej Textiles and Industries (STIL), a manufacturer of value added dyed yarns and home textiles, announced that its board of directors has approved the purchase of Birla Textile Mills (BTM) as a going concern on slump sale basis effective from Apr. 1, 2015, subject to approval of shareholders and other statutory clearances.

BTM - a unit of Chambal Fertilisers and Chemicals is located at Baddi (Himachal Pradesh). The unit has 83,376 spindles and manufactures cotton, synthetic and blended yarn in grey and dyed forms. This will raise the total spinning capacity of the company to 3,76,920 spindles. The unit has generated turnover of Rs 3.96 billion and EBIDTA of Rs 429.4 million during FY14. The business of the unit has strong synergy with the business of the company.

Shares of the company gained Rs 5.9, or 1.72%, to trade at Rs 348.90. The total volume of shares traded was 72 at the BSE (11.21 a.m., Tuesday).